Tesla price target raised at Wedbush, Truist; shares up

Investing.com -- Two investment firms lifted their price target on Tesla (NASDAQ:TSLA ) shares, sending them rising around 1% in premarket trading Monday. 

Wedbush analysts raised their price objective from $400 to $515, implying more than 18% upside from the Friday closing price. They believe the Trump administration will be “a total game changer” for the carmaker’s autonomous driving and AI story over the coming four years.

The investment firm also presented a bull case scenario where Tesla's stock could reach $650 by 2025.

Analysts led by Daniel Ives estimate that the AI and autonomous opportunity represents "at least $1 trillion alone for Tesla."

They believe that under a Trump administration, these critical initiatives are likely to be expedited, as the federal regulatory challenges Tesla has faced in recent years around Full-Self Driving (FSD) and autonomous technology are expected to ease significantly.

“We believe Tesla could reach a $2 trillion market cap by the end of 2025 as the company's autonomous vision starts to take shape along with very solid Tesla delivery demand we expect from the core China market,” analysts added.

Wedbush also noted that their price target does not include potential gains from Tesla's Optimus project, which could provide significant additional value.

Separately, analysts Truist Securities also adjusted its price target for Tesla, raising it to $360 from $238 following the company's Q3 performance.

The revision reflects a less cautious perspective on Tesla's ability to generate positive cash flows, especially with the prospect of adding a robotaxi service.

This new price target comes despite acknowledging that Tesla's recent stock price surge is not primarily due to its Q3 results or business outlook, but rather CEO Elon Musk's improved relationship with President-elect Trump.

Still, Truist maintained its Hold rating on Tesla stock, citing “somewhat elevated risks now that so much value is ascribed to AI & other businesses that have no marketable product, let alone cash flow, today.”

Source: Investing.com